Quimbee logo
DMCA.com Protection Status

Wetzel v. Equipment Dealers Credit Co.

274 B.R. 825 (2002)

Case BriefRelatedOptions
From our private database of 35,600+ case briefs...

Wetzel v. Equipment Dealers Credit Co.

United States Bankruptcy Court for the Western and Eastern Districts of Arkansas

274 B.R. 825 (2002)

Facts

Randy and Kimberly Davis (debtors) filed for Chapter 7 bankruptcy. The appointed trustee, Frederick S. Wetzell III (the trustee), filed an adversary proceeding against Equipment Dealers Credit Company (Equipment Dealers) (creditor) regarding the validity and priority of a lien claimed by Equipment Dealers against the bankruptcy estate. The Davises filed a loan application with Equipment Dealers in May 1999. Equipment Dealers claimed a security interest in a tractor and a front-end loader. In the loan application, the Davises stated that they lived in Clark County, Arkansas. In fact, they lived in Hot Springs County, Arkansas. Under Arkansas law, perfection required that the financing statement for farm equipment must be filed in the county of the debtor’s residence. Equipment Dealers filed a financing statement in Clark County but did not file one in Hot Springs County. The trustee argued that because Equipment Dealers had not properly filed, its security interest was not perfected and thus could be avoided by the trustee using his strong-arm power to avoid unperfect security interests. The trustee generally has priority over unperfected security interests but not perfected security interests, provided that those interest were perfected prior to the bankruptcy filing. Equipment Dealers argued that it acted in good faith in filing in the wrong county and that it should have priority.

Rule of Law

Issue

Holding and Reasoning (Fussell, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 620,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 620,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 35,600 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 620,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 35,600 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership